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The City of Saskatoon will likely need to shell out at least $7.9 million more than it did last year to provide civic services — a move that would lead to a property tax increase of roughly four per cent.

Administrators shared a 2017 budget update with city council at a special meeting Monday morning. According to the update, which is a preliminary estimate that does not include extra costs the city will incur next year because of growth, the city will bring in $10 million more in 2017 compared to 2016, but will also need to spend $17.9 million more. That would be a 3.89 per cent property tax increase.

The city’s revenue increase is not as high as it has been in the past because it’s getting less money from the provincial government than it did last year and because fewer new houses and businesses were built last year than in previous years.

“There’s some evidence there that the economic slowdown is going to create some future challenges for future councils and it’s going to be very important to be as thoughtful and as creative as we can in terms of managing future costs and future revenues,” councillor and mayoral candidate Charlie Clark said.

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New neighbourhoods on the outskirts of the city are not paying for themselves and Clark said he’s “a bit frustrated” the city can’t figure out how to make that work. He said citizens and councillors may not understand the true budgetary implications of building new neighbourhoods and that building in populated areas is a true and tested way to generate revenues faster than incurring costs.

Mayoral candidate Kelley Moore, who attended Monday’s council meeting, said the city has “overextended” itself in building new neighbourhoods in the suburbs.

“I believe we shouldn’t have started that development if we couldn’t pay for it in the first place,” she said. If elected, she would advocate that no additional suburban neighbourhoods be developed, she added.

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“I don’t see us needing any more big legacy projects or extending out at this time. We know that that’s not paying for itself and it’s going to be a burden on our taxpayers,” Moore said. “They have to get the basics right before we start extending out at this time any further.”

Incumbent mayor Don Atchison said the debate about growth “amazed” him. If there had been more growth in the city, there would be more revenue and the proposed property tax increase would be lower, he said.

It’s difficult to have an opinion on the budget at this point because not all the numbers are there, Atchison said. Notably, the police budget was not included in the preliminary update. However, he said he will always strive for the lowest property tax increase possible.

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Mayoral candidate Henry Dayday was not present at the council meeting.

The public was initially not scheduled to have a peek at the preliminary budget until after the Oct. 26 municipal election, but Clark and Moore called for it to be released before residents head to the polls. They argued it was transparent for residents to know about a potential property tax increase before they vote.

The final budget and associated property tax increase will be decided by a new city council in December.

A 3.89 per cent property tax hike would be the lowest increase since 2010, when it was 3.86 per cent. Last year’s increase was 3.96 per cent.

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